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In a press release issued on 20 November 2006, the Treasurer, Peter Costello, announced that he had signed a new tax treaty between Australia and Finland to replace the existing, outdated treaty. It will substantially reduce withholding tax on certain dividend, interest and royalty payments in line with Australia’s tax treaties with the United States and the United Kingdom, and more recently with France and Norway.

The new treaty will enter into force when both countries advise that they have completed their domestic requirements. Legislation for this purpose will be introduced in the Australian Parliament as soon as practicable.

For more information and a copy of the Treasurer's press release, No 2006/126, 20 November 2006, go here

For a copy of the new treaty, go here

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